Test Bank for International Economics, 5e Robert

for International Economics, 5e Robert Feenstra, Alan Taylor (All Chapters download link is at the end of this file)

Chapter 1

• Which of the following was NOT an impact of the coronavirus on medical resources in early to mid-2020?
• The United States reduced its tariff on medical equipment imported from China.
• All countries removed export quotas on medical equipment.
• Many countries restricted their exports of medical equipment to keep those goods for emergency use

at home.

• Demand for medical equipment rose around the world.

ANSWER: b

• One of the impacts of the novel coronavirus in 2020 was that trade in medical equipment improved in the

world economy to meet the need for medical products in

• Asia.
• Europe.
• North America.
• Asia, Europe, and North America, along with the developing countries with dense populations.

ANSWER: d

• What is the term for a capital flow that is used to purchase or build a tangible asset like a factory?
• migration
• service exports
• service imports
• foreign direct investment

ANSWER: d

• To maintain a steady domestic supply of medical equipment, some countries followed
• export promotion policies.
• export quota trade policy.
• import tariff trade policy.
• a reduction in trade-restrictive policies in general.

ANSWER: b

• What is the name given to a tax on imported goods?
• income tax 1 / 4

• tariff
• sales tax
• excise tax

ANSWER: b

• When a foreign resident purchases a good or service from someone in the United States, the transaction is

categorized as:

• a U.S. export.
• a U.S. import.
• bilateral exchange.
• a compensating differential.

ANSWER: a

7. Imports are:

• goods or services purchased from a foreign resident.
• goods or services sold to foreign residents.
• goods purchased from foreigners—you cannot purchase services from foreigners.
• services purchased from foreigners—imports do not include goods.

ANSWER: a

8. Exports are:

• goods or services purchased from a foreign resident.
• goods or services sold to foreign residents.
• goods sold to foreigners—you cannot sell services to foreigners.
• services sold to foreigners—exports do not include goods.

ANSWER: b

• Which of the following is considered a service export?
• Japan buys soybeans from the United States.
• China sells iPhones to the United States.
• Mexican tourists visit the Grand Canyon.
• France sells wine to the United States.

ANSWER: c

• The key difference between an immigrant and a refugee is that
• immigrants are driven by a desire to earn a higher income and refugees are prompted by the poverty

and danger of the home country.

• immigration is a matter of personal choice and refugee status is a condition forced on individuals.
• approval of immigration status takes less time than confirmation of refugee status. 2 / 4

• it is easier to obtain immigrant status than to gain refugee status.

ANSWER: a

11. A country's service exports include:

• a restaurant meal purchased by its resident in another country.
• equipment or automobiles with a warranty and a service contract sold to a foreign resident.
• a ticket on the country's airline sold to a foreign resident.
• a resident who migrates to work in another country.

ANSWER: c

• An American tourist buys a ticket to an opera in Paris. The U.S. government classifies this transaction as:
• an import of a French opera, a good.
• a service export.
• a service import.
• an export of a good.

ANSWER: c

• A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:
• an import of a good.
• a service export.
• a service import.
• an export of a good.

ANSWER: c

• The coronavirus has had a dramatic impact on international trade in services. One service sector involves

airline travel, which is an example of a

• service export for the countries whose citizens are passengers.
• service import for the country whose company owns the airline.
• service export for the country whose company owns the airline.
• good export for the country whose company owns the airline.

ANSWER: b

• What country was the world's largest exporter of goods in 2018?
• China
• Germany
• the United States
• Japan

ANSWER: a

• / 4

• Currently, which of the following countries is the world's largest exporter of goods (in terms of dollar

value)?

• China
• the United States
• Japan
• Germany

ANSWER: a

• Currently, which of the following countries is the world's largest exporter of goods and services (in terms of

dollar value)?

• China
• the United States
• Japan
• Germany

ANSWER: a

• Which of the following transactions is NOT included in the trade balance?
• domestic residents' purchases of foreign-made goods
• domestic residents' purchases of foreign-provided services
• domestic residents' purchases of foreign stocks and bonds
• domestic residents' purchases of foreign-produced software

ANSWER: c

• The difference between the total value of a country's exports and the total value of its imports is defined as

the country's:

• trade status.
• trade balance.
• trade deficit.
• bilateral trade balance.

ANSWER: b

• If the value of a nation's imports is more than the value of its exports, then the nation is experiencing:
• a trade deficit.
• a trade surplus.
• balanced trade.
• a trade balance.

ANSWER: a

• The bilateral trade balance is measured as
• / 4